IBM to Sun Microsystems: On Second Thought, No Thanks

By on Apr 6, 2009 at 4:45 PM
General April 6, 2009

In an economic climate such as the one we’re currently experiencing, we’re sure that Sun Microsystems is wishing they could say, “No takesies-backsies!” For the past few weeks, it seemed like everyone was on the edge of their seat waiting to see what would happen with IBM’s offer Sun. On Sunday, everything came to a halt when IBM withdrew a hefty $7.5 billion bid for the computer and software manufacturer. Sun became apparently picky when the sum ($9.40 per share instead of the $9.55 offer from the prior week) and details of the negotiations didn’t quite meet their tastes. Now the company could be facing a rough future if IBM can’t find a way to please and purchase it.  In the meantime, Sun’s stock prices could continue to drop as they further their quest to find a buyer.

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  • joecurve

    hey, is this a “drudge-like” site? mergers, buyouts, bailouts and financial news is not why people visit this place. i know, we have to keep the threads going, ain’t it so???

  • http://twitter.com/johnsies johnson

    I didn’t want the deal to go through. When I bought my shares at $4, I bought them because I believe Sun can go up $12-15, once the layoffs take affect on the bottom line.

  • vinay

    I am glad this happened. Sun Micro is a good cultured orginization to be bought by IBM.

    I hope sun Microsystems finds a good buyer.. I don’t see a reason why Google is not interested.

  • Roger A

    News in San Francisco is reporting the opposite… Sun said NO to IBM and claims their offer was too low for the company. Not that IBM said “No thanks”… So I guess it depends what your reading.

  • JJLO

    Everything I read said IBM withdrew offer. In either case the deal is off. It would have been tough to pass antitrust scrutiny in my opinion.

  • dondgc

    IBM withdrew the offer (according to news reports – not my personal knowledge) after Sun told IBM they were no longer going to continue “exclusive” negotiations with IBM. So while technically IBM withdrew, it was in direct response to Sun effectively saying “we think we can do better without you.”

  • http://www.docmurdock.com Michael Murdock

    Sun is currently run by Scott McNealy, not Jonathan Schwartz as most people think. Jonathan is a kid with not a lot of experience and with Scott in charge of the Board well Jonathan is just a puppet.

    To move Sun forward much has to take place:

    1. Fire McNealy
    2. Fire Schwartz
    3. Fire the board
    4. Top down revisions of all contracts & pay
    5. thin product line
    6. improve support for existing & legacy
    7. develop new exciting products
    8. market those products to consumers/biz
    9. reestablish government contracts/positions
    10. Stock value will achieve $75-100 in 2 years or less when this is done.

    By me.

    Michael Murdock, CEO
    DocMurdock.com (a former Sun employee who has communicated much with McNealy & Schwartz)

  • http://cybercities.net molix

    Better still Sun should merge with Apple, both have common values of excellence and innovation, this will complete both companies, Sun has great weakness in consumer products and lacks the cool look in that field. Apple has weakness in corporate high end products. Replace OSX with Solaris 10 after fitting latter with OSX interface and proper plugins, port solaris into mobile devices and sustain Java to replace objective C? shares will go up and you will have a complete team. Having apple marketing will make the difference

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